NEW YORK: Shares of Donald Trump’s social media company rose about 16 percent in the first day of trading on the Nasdaq, boosting the value of Trump’s large stake in the company as well as the smaller holdings of fans who purchased shares as a show of support for the former president.
Trump Media & Technology Group Corp. merged Monday with a blank-check company called Digital World Acquisition Corp. Trump Media, which runs the social media platform Truth Social, has now taken Digital World’s place on the Nasdaq stock exchange.
Shares closed at $57.99, up 16.1 percent, giving the company a market value of $7.85 billion. At one point the stock was up about 59 percent. Trump holds a nearly 60 percent ownership stake in the company, now worth about $4.6 billion.
Many of those investing in Trump Media are small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors. Those shareholders helped the stock of Digital World more than double this year in anticipation of the merger going through.
Truth Social launched in February 2022, one year after Trump was banned from major social platforms including Facebook and X, formerly Twitter, following the Jan. 6 insurrection at the US Capitol. He’s since been reinstated to both but has stuck with Truth Social.
On Truth Social Tuesday, users were posting about being shareholders or seeking tips on how to buy shares.
One user urged conservatives to “get behind the DJT stock and sent it over $100 per share” to “drive the liberals insane!” Another declared: “Get yourself a piece of #DJT stock if your a true MAGA supporter.”
A day earlier, Trump Media CEO Devin Nunes, a former House Republican, said, “As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors.”
Despite the enthusiasm, investors could experience a bumpy ride. For one, they’re betting on a company with uncertain prospects of turning a profit. Trump Media lost $49 million in the first nine months of last year, when it brought in just $3.4 million in revenue and had to pay $37.7 million in interest expenses.
In a recent regulatory filing, the company cited the high rate of failure for new social media platforms, as well as its expectation that its operations will lose “for the foreseeable future” as risks for investors.
Research firm Similarweb estimates that Truth Social had roughly 5 million active mobile and web users in February. That’s far below TikTok’s more than 2 billion and Facebook’s 3 billion — but still higher than other “alt-tech” rivals like Parler.
However, Trump Media has said it doesn’t keep track of some numbers that rivals use as key measures of their performance, such as average revenue per user or active user accounts. It says it wants to focus on the long-term instead of “short-term decision-making.”
For that long term, though, skeptics see struggles ahead for a company that’s estimated to have far fewer users than rivals in a business where gaining a critical mass is key.
“I think there is a possibility of, sooner or later, the stock price falling by 95 percent,” said Jay Ritter, a professor and expert on initial public offerings of stock at the University of Florida’s Warrington College of Business.
Brian Dunn, director of the Institute for Compensation Studies at Cornell University, compared the fervor for Trump Media shares to the meme stock craze that boosted shares of companies such as GameStop and AMC Entertainment to exorbitant heights in 2021.
“Like any meme stock or fad, as long as there’s a greater fool to buy you out for what you paid for it, than you can continue to prosper,” Dunn said, warning that small investors “could end up holding the bag when the music stops.”
On Monday, Trump told reporters that “Truth Social is doing very well. It’s hot as a pistol and doing great.” On Tuesday, he posted “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!,” on the platform.
The company, which is based in Florida, said in a recent regulatory filing that it “is highly dependent on the popularity and presence of President Trump.” Trump Media has acknowledged that there are risks associated with Trump’s outsized influence.
If the former president were to limit or discontinue his relationship with the company for any reason, including due to his campaign to regain the presidency, the company “would be significantly disadvantaged,” it said in a filing ahead of the merger with Digital World.
Acknowledging Trump’s involvement in numerous legal proceedings, the company noted that “an adverse outcome in one or more” of the cases could negatively affect Trump Media and Truth Social.
Another risk, the company said, was that as a controlling stockholder, Trump would be entitled to vote his shares in his own interest, which may not always be in the interests of all the shareholders generally.
Trump’s social media company gains in its first day of trading on Nasdaq
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Trump’s social media company gains in its first day of trading on Nasdaq
- Many of those investing in Trump Media are small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors
Fifteen inmates killed in new Ecuador jail massacre
- “Serious incidents were reported between inmates, resulting in a preliminary toll of 15 dead and 14 wounded,” the prison service said
- The prison service said that a “significant contingent” of troops and police had been deployed to restore order at the prison, which was now under the “full control” of the authorities
GUAYAQUIL, Ecuador: At least 15 inmates were killed and 14 injured in clashes Tuesday at a prison in the Ecuadoran port of Guayaquil, the latest in a series of massacres blamed on a war between drug cartels.
Once seen as a beacon of stability in South America, Ecuador has become one of the world’s most violent nations and a major drug trafficking hub in recent years.
Much of the violence has taken place in prisons where more than 460 inmates have been killed since February 2021, often in gruesome fashion, with their bodies dismembered and burnt.
The latest bloodshed took place in Litoral penitentiary, the country’s biggest, where 119 inmates were killed in September 2021 in Ecuador’s worst prison massacre.
“This morning, in a pavilion of the Litoral penitentiary, serious incidents were reported between inmates, resulting in a preliminary toll of 15 dead and 14 wounded,” the prison service said.
AFP drone images of the prison yard showed inmates in orange prison garb placing a body on the ground next to a dozen corpses wrapped in blankets.
In another part of the prison, dozens of prisoners could be seen sitting in rows, guarded by security force members.
The prison service said that a “significant contingent” of troops and police had been deployed to restore order at the prison, which was now under the “full control” of the authorities.
The violence in Ecuador’s prisons has spilled over onto the streets.
The Andean country registered a record 47 homicides per 100,000 inhabitants in 2023, up from a rate of six per 100,000 in 2018.
In January, the violence reached a new peak following the jailbreak of a powerful narco boss, Jose Adolfo Macias.
In the most dramatic incident, gunmen stormed the studios of a television station in Guayaquil and held a presenter at gunpoint live on air.
Gang members also took scores of prison guards hostage and set off explosions prompting President Daniel Noboa to declare war on organized crime and deploy the army to combat the gangs.
Tuesday’s massacre is the first at a prison since then.
But tit-for-tat gang attacks left at least 17 dead near Guayaquil last month and prison officials continue to be targeted.
Five penitentiary staff were shot dead in the space of a month between late August and late September.
The victims included the director of Litoral, who was shot dead after her car was ambushed while traveling near Guayaquil and the head of another prison in the Amazonian province of Sucumbios, who too was shot dead while traveling by car.
Noboa claims his offensive against organized crime is nonetheless yielding results.
Between January and September, 4,236 murders were reported, down from 5,112 for the same period in 2023.
Spanish flood-hit towns brace for another storm
- AEMET forecasts as much as 120 mm of rain in 12 hours
- While the storm is not expected to be as powerful, it could be devastating for the towns that are still recovering
MADRID: Flood-hit towns near the eastern city of Valencia were rushing on Tuesday to clear the sewage system of mud and debris, pile sandbags and cancel school classes as they prepared for another approaching storm.
Two weeks after the worst floods in Spain’s modern history killed more than 200 people, national weather service AEMET issued an orange alert, the second-highest, for strong or torrential rains expected on Wednesday in the same area.
AEMET forecasts as much as 120 mm (4.7 inches) of rain in 12 hours. While the storm is not expected to be as powerful, it could be devastating for the towns that are still recovering.
The impact of the rain could be severe because of the quantities of mud already on the ground and because of the condition of the sewage system, Rosa Tauris, a spokesperson for Valencia’s emergency committee, told reporters.
Thousands of workers are cleaning buildings while removing the mud that accumulated on roads and sidewalks and clogged the sewage pipes and drains in towns and suburbs around Valencia.
The emergency committee issued a special warning requesting that municipalities and organizations take preventive measures, including closing schools.
Tauris recommended citizens work remotely when possible, avoid non-essential travel and follow emergency services’ updates.
The town council of Chiva, one of the worst-hit sites, canceled classes and sports activities, while in nearby Aldaia, workers piled up sandbags to protect the town.
“We are placing sandbags to replace the floodgates that the previous floods tore down,” municipal worker Antonio Ojeda said, hoping this would prevent the Saleta ravine from overflowing again.
They are also cleaning the ditches and drains that are obstructed with trees, tires and car parts.
On Monday, 10,000 tons of furniture, appliances and clothing were removed, almost as much waste as Valencia disposes of in a year.
Valencian authorities suspended classes and activities at recreational centers in the flood-hit suburbs, advising volunteers who flocked to the area to help clean up to avoid travel.
The AEMET’s weather alerts cover much of the Mediterranean coast of Catalonia, Valencia and Andalusia and the Balearic Islands.
Court delays decision on sentencing Trump to November 19
- Ahead of election, Trump’s lawyers moved to have case thrown out
- Trump’s legal team almost certain to seek to oppose or delay any sentencing
NEW YORK: The judge in Donald Trump’s New York criminal case has delayed to November 19 a decision on potentially throwing out the US president-elect’s conviction, the court said Tuesday.
Trump was convicted of 34 felony counts in May after a jury found he had fraudulently manipulated business records to cover up an alleged sexual encounter with a porn star ahead of the 2016 election.
The president-elect is due to be sentenced on November 26, may receive a reprieve if Judge Juan Merchan decides to dismiss the case following the Supreme Court’s recent ruling on presidential immunity.
That landmark ruling saw the court, with a 6-3 conservative majority, decide that presidents have sweeping immunity from prosecution for a range of official acts committed while in office.
Ahead of the election, Trump’s lawyers moved to have the case thrown out in light of the Supreme Court decision, a move that prosecutors have firmly rejected.
If the judge throws out the case on that basis, there will be no sentencing of Trump, 78.
If he does not, Trump’s legal team would almost certainly seek to oppose or delay any sentencing, insisting it would interfere with Trump’s role as commander-in-chief once he is sworn in on January 20.
“The joint application for a stay of the current deadlines... until November 19, is granted,” the court wrote in an email to parties in the case, seen by AFP.
Alongside the New York case, brought by state-level prosecutors, Trump faces two active federal cases, one related to his effort to overturn the 2020 election and the other connected to classified documents he allegedly mishandled after leaving office.
However, as president, he would be able to intervene to end those cases, and Jack Smith, the special counsel handling both cases, has reportedly begun to wind them down.
A Trump-appointed federal judge already threw out the documents case, but Smith had sought to appeal that decision.
“Trump’s victory means he is unlikely to be held accountable for any of his alleged criminal misconduct,” said former prosecutor Randall Eliason in an article on Substack.
“That’s a severe blow to the ideal of the rule of law.”
The New York conviction, coming just months before an election that Trump won convincingly, was one of several dramatic developments in the race for the White House.
In July, Trump survived an assassination attempt at a rally in Pennsylvania when a bullet grazed his ear.
Later that month, President Joe Biden stepped aside as the Democratic Party’s candidate following a disastrous performance against Trump in a televised debate.
That paved the way for Vice President Kamala Harris to become the first woman of color from a major US party to stand for president.
Driver rams his car into crowd in China, killing 35, as police say he was upset about his divorce
- Police detained the 62-year-old man, who is being treated for wounds thought to be self-inflicted, shortly after the attack
- He was dissatisfied with the split of financial assets in his divorce, according to a preliminary investigation, police said
ZHUHAI, China: A man who authorities said was upset over his divorce settlement rammed his car into a crowd of people exercising at a sports complex in southern China, killing 35 and severely injuring dozens of others, police said Tuesday.
Police detained the 62-year-old man, who is being treated for wounds thought to be self-inflicted, shortly after the attack Monday night in the southern Chinese city of Zhuhai. The city is hosting the People’s Liberation Army’s annual aviation exhibition, which opened Tuesday, and searches for what happened were heavily censored for users behind China’s Great Firewall.
Outside of the controls, however, videos circulated on the social media platform X. In several, dozens of people could be seen lying on the track at the sports complex, which is regularly used by hundreds of residents to run, play soccer or dance.
In one, shared by news blogger and dissident Li Ying, a woman says “my foot is broken.” That same video showed a firefighter performing CPR on a person, as others were told to leave. Li, who is known on X as Teacher Li, posts daily news based on user submissions
In addition to the 35 people killed, police said 43 were injured.
China has seen a number of attacks in which suspects appear to target members of the public at random.
In October, a man was detained after he allegedly attacked children with a knife at a school in Beijing. Five people were wounded. In September, three people were killed in a knife attack in a Shanghai supermarket, and another 15 were injured. Police said at the time that the suspect had personal financial disputes and came to Shanghai to “vent his anger.”
In May, two people were killed and 21 injured in a knife attack in a hospital in Yunnan province.
Police identified the man detained in Monday’s attack only by his family name of Fan, as is typical, and said he was unconscious and receiving medical care after being found in his car with a knife and wounded.
He was dissatisfied with the split of financial assets in his divorce, according to a preliminary investigation, police said.
Chinese authorities appeared to be tightly controlling information about the incident. Internet censors tend to take extra care to scrub social media ahead of and during major events, such as the aviation exhibition or the annual meeting of the National People’s Congress.
For almost 24 hours after the attack, it was unclear what the death or injury toll was. On Tuesday morning, a search on the Chinese social media platform Weibo for the sports center turned up just a few posts, with only a couple referring to the fact something had happened, without pictures or details. Articles by Chinese media from Monday night about the incident were taken down.
Chinese leader Xi Jinping called for the “strict” punishment of the perpetrator according to law in a statement Tuesday evening.
He also called on all local governments “to strengthen prevention and control of risks at the source, strictly prevent extreme cases from occurring, and to resolve conflicts and disputes in a timely manner,” according to the official Xinhua news agency.
Indian travel agents record surge in outbound tourism to Middle East
- There has been an increase of at least 30% in trips to Middle East from Indian city of Ahmedabad alone, agent says
- Indian travelers are drawn to ‘less explored’ Middle East region, which is increasingly becoming top choice
NEW DELHI: An increasing number of Indian travelers are visiting the Middle East this year, tour operators said on Tuesday after recording a significant surge to the region during the Diwali holiday season.
The Middle East has become an increasingly popular foreign destination for many Indian travelers, with Saudi Arabia and the UAE often cited as the top two countries in demand.
As the festive Diwali season and the long holidays that came with it concluded earlier this month, tourism players in India say there was a notable increase in trips to Arab countries.
“In this festival season, there was a huge demand,” Jyoti Mayal, president of the Travel Agents Association of India, told Arab News on travel from India to the UAE, citing Saudi Arabia and Qatar as particularly popular destinations.
“These countries in the Middle East are less explored and that’s why more and more people are traveling (to them).”
Travelers from the western Indian state of Gujarat were drawn to new and affordable packages offered to Gulf destinations like Dubai, said tour agent Manish Sharma.
“From Ahmedabad, I can say that compared to the past, there has been an increase of 30 to 35 percent in the outbound travels to the Middle East this time,” Sharma, who runs his business in the Gujarati capital, told Arab News.
Their top choices were UAE cities such as Abu Dhabi, Sharjah and Dubai, he added.
“The reasons for the growth are manifold — it’s cheap, easy connectivity, it’s near, you get good food,” he added.
Members of the Gujarati middle class “take at least one or two vacations every year,” he said. “During Diwali and summer vacation, they prefer to go to Dubai.”
Many Indians appear to be taking advantage of the increasing number of direct flights to the UAE. There are at least 14 daily flights to Dubai from Ahmedabad alone.
“There has been an increase in Dubai travel in the last 10 years, (and) in the last three years tourism has grown greatly. But this year, tourism to UAE has gone phenomenally and the reason is the increase in the number of flights,” Sharma said.
